Which of the Following Is Not Considered to Be a Valid

question 46

Multiple Choice

Which of the following is not considered to be a valid performance measure of a waiting line system?

• A) the average number of customers waiting in line
• B) the average number of customers in the system
• C) the average amount of time customers spend waiting
• D) the system utilization rate
• E) the service pattern

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, providing a measure of performance beyond accounting profit.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used in the production of goods or services.

Uninsurable Risk

An eventuality for which the frequency or magnitude of potential losses is unpredictable or unknowable. Insurance companies are not willing to sell insurance against such risks.